Tipping Point Quick Hits (8.4.22)

Pelosi in Taiwan, CBDCs in Japan, and a Reminder not to Fear

China Reacts to Pelosi’s Taiwan Visit

The global geopolitical temperature heated up earlier this week when U.S. Speaker of the House Nancy Pelosi made a historic trip to Taiwan as part of her Asia tour. It was the first visit by a sitting U.S. Speaker since Newt Gingrich went to Taiwan in the 1990s, and it happened after several days of anticipation, Chinese bluster, and conflicting messages from the United States government.

Once in Taiwan, Pelosi praised the island’s commitment to democracy and made it clear that the U.S. would “not abandon” Taiwan in the face of Chinese aggression.

Before her visit, China had begun threatening Taiwan with military exercises and warned that the United States was playing with fire, even as the U.S. military itself suggested the visit might not be the best idea. Right before her arrival, 21 Chinese warplanes made incursions into Taiwan’s air defense identification zone. Then, within minutes of her arrival, China began a series of joint military operations around the island.